Budget 2013: Corporation tax to be cut to 20%

Chancellor George Osborne has announced that corporation tax will be cut to 20% in April 2015.

He said this will make the UK's corporation tax the lowest of any major economy in the world and this move demonstrates "the UK is open for business". This reduction is an extension of the announcement made in Budget 2012 when Osborne announced he would reduce corporation tax to 22% by April 2014. He reduced this further in the Autumn Statement when the main rate of corporation tax was reduced from 22% to 21%, to take effect in April 2014. The current rate of corporation tax is 24% and will reduce to 23% next month. Corporation tax is a tax levied on the profits made by companie...